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2023 (6) TMI 89 - HC - Income TaxUnexplaIned cash credit u/s. 68 - assessee had obtained accommodation entries in form of loan and advances - AO held that the assessee could not satisfy the conditions of sections 68 of the Act to show the identity, creditworthiness and genuineness of the transaction - allegation against the assessee that it had obtained accommodation entry in form of loan from a party not genuine company [one of the 20 fake companies amongst the group of companies created by one Dalmiya] HELD THAT:- As could be seen from the facts noted and recorded by the appellate authority and the Income Tax Appellate Tribunal, the said party extending loan to assessee has been held to be a genuine party. Its identity, genuineness and creditworthiness were established. When party as found to be a genuine lender, the entire basis for proceedings against the assessee would vanish. Revenue was not justified in proceeding against the assessee on the ground that the loan taken from the said party was unexplained credit and that the lender was not genuine. Since the factual foundation for reopening the assessment of the respondent-assessee is absent, the action taken by the appellant-Revenue against the respondent-assessee cannot be endorsed to. Decided in favour of assessee.
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